At risk of losing house

[Ojela]

We filed Chapter 13 in Aug. 2002.

Selling our home may be our only option to financial survival.

Does anyone know what happens to our home equity if the home were to sell?

Thank you kindly.

[ihatearizona]

You would get to keep the equity protected by your state's exemption. The Trustee would likely get the rest to distribute to your creditors.

[AttorneyOney]

Originally Posted by ihatearizona

You would get to keep the equity protected by your state's exemption. The Trustee would likely get the rest to distribute to your creditors.

This is a very dangerous answer. Much depends on whether the ch. 13 plan vests estate property in the debtor or not. The only safe way to proceed when a home is at stake is to ask one's attorney. Other options may be better -- including a conversion to ch. 7 or a hardship discharge.

[Ojela]

What is a "hardship discharge"?

Thank you.